Question : The adjustment required for overvaluation of closing stock, while calculating adjusted profit for calculate goodwill is
(A) reduction from concerned year's profit.
(B) reduction from next year's profit.
(C) addition to next year's profit.
(D) addition to previous year's profit
Choose the correct answer from the options given below:
Option 1: (A), (B) and (D) only
Option 2: (A) and (C) only
Option 3: (A) and (D) only
Option 4: (B), (C) and (D) only.
Correct Answer: (A) and (C) only
Solution : When closing stock is overvalued (increase in credit side) in Trading A/c, current year's gross profit will be increased. In order to eliminate this effect, overvaluation of closing stock will be reduced from current year's profit. Overvaluation of closing stock while calculating adjusted profit will be reduced from the concerned year's profit and added to the next year's profit.
Question : Arrange the following in the correct order:
(A) Subscribed Capital
(B) Issued Capital
(C) Authorised Capital
(D) Paid-up Capital
(E) Called-up Capital
Option 1: (C), (B), (A), (D), (E)
Option 2: (B), (C), (A), (D), (E)
Option 3: (C), (B), (A), (E), (D)
Option 4: (B), (C), (A), (E), (D)
Question : Arrange the following steps in the correct sequence of the life of a company :
(A) Commencement of Business
(B) Incorporation
(C) Promotion
(D) Floatation
Choose the correct answer from the options given below :
Option 1: (A), (B), (C), (D)
Option 2: (A), (C), (B), (D)
Option 3: (B), (A), (D), (C)
Option 4: (C), (B), (D), (A)
Question : Arrange the following in the correct sequence in the context of debenture.
(A) Payment to debenture-holders
(B) Creation of DRR
(C) Issue of debentures
(D) Redemption becomes due
Question : Which one of the following are correct in connection with the Common Size Statement?
(A) Expressed as a percentage on revenue from operation
(B) Horizontal analysis
(C) Vertical analysis
(D) Expressed as a percentage on total assets
Option 2: (A), (B) and (C) only
Option 3: (A), (C) and (D) only
Option 4: (B), (C) and (D) only
Question : Arrange the following in proper sequence while preparing Cash Flow Statement :
(A) Net cash flow from operating activities
(B) Cash flow from financing activities
(C) Cash flow from investing activities
(D) Calculate net profit before tax and extraordinary items in working note
Option 2: (D), (A), (C),(B)
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